DOT denies appeal in air subsidy bids

The U.S. Department of Transportation has denied a request by Lawrenceville-based Wings Air to cancel a federal subsidy to Georgia Skies for passenger service between Athens and Atlanta.

Wings Air asked the DOT to cancel the essential air service subsidy it awarded to Georgia Skies and reopen bidding.

The DOT denied the appeal today, rejecting Wings Air's claim that Georgia Skies was not delivering on promises it made in order to win the federal subsidy.

The DOT in May awarded Georgia Skies the air subsidy, which helps pay for unprofitable air service for small and medium-sized airports. Wings Air also bid on the subsidy. Both airlines currently offer round-trip service between Athens and Atlanta.